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Why Co-Signers Are Attractive to Landlords
Renting apartments or condominiums are slightly different compared to rental homes. While many low income renters seek Section 8 renters, many rentals are owned by property owners who do not participate in Section 8 programs. A co-signer can be a wise choice for a person who would not normally qualify for a lease agreement. Some landlords prefer co-signers and often give preference when making decisions based on two renters seeking the same property.
How Co-Signers Improve Lease Acceptance Rates
1. Instant References
2 Financial Stability
3. Lengthy Lease or Homeownership History
4. Decreased Liability
Co-Signers Provide an Immediate Reference
When credit challenges can force a denial of a lease agreement, landlords or property owners often search the history of a renter in hopes of turning a negative into a positive. Co-signers on a lease agreement provide an instant reference for a renter in character as well as added responsibility. Family members are often the preferred choice of property owners when co-signers are reviewed.
Show of Financial Stability
A person who falls short of income or credit requirements can fall back on the financial stability of a co-signer. Landlords and property owners often review the financial support that co-signers provide to renters. A history of above average income generation and responsible credit are two factors that are positives to property owners reviewing co-signed applications.
History of Homeownership or Past Lease History
A continued repayment plan for more than two years is what most property managers base decisions upon when evaluating co-signer eligibility. A person who is listed as a co-applicant to a lease agreement is often judged upon the history of home ownership or lease agreements signed in the past. This information is always verified before final decisions are made. A long history of repayment is a positive sign for most property owners.
Reduced Liability While Under Lease
Liability is one of the major concerns of property owners or property managers evaluating housing applications. A person with no rental history is often a large reliability compared with a person who can be validated through other landlords or property owners.
Co-signers often provide reduced liability in the eyes of landlords after reviews are made about financial status, homeownership and character references. Having a person co-sign for a rental home does offer reduced liabilities for property owners who are in fear of paying for repairs after leases are terminated.